Bill Text: TX HB2458 | 2019-2020 | 86th Legislature | Enrolled
Bill Title: Relating to the operation and administration of the Texas Bullion Depository.
Spectrum: Partisan Bill (Republican 3-0)
Status: (Passed) 2019-05-24 - Effective immediately [HB2458 Detail]
Download: Texas-2019-HB2458-Enrolled.html
H.B. No. 2458 |
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relating to the operation and administration of the Texas Bullion | ||
Depository. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 151.002(a), Finance Code, is amended to | ||
read as follows: | ||
(a) This section defines general terms that apply to an | ||
applicant for or holder of a money services license issued under | ||
this chapter, regardless of whether the license is a money | ||
transmission license or [ |
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specifically to money transmission are defined in Section | ||
151.301. Additional terms that apply specifically to currency | ||
exchange are defined in Section 151.501. [ |
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SECTION 2. Sections 151.002(b)(11) and (14), Finance Code, | ||
are amended to read as follows: | ||
(11) "License holder" means a person that holds a | ||
money transmission license or[ |
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(14) "Money services" means money transmission or[ |
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currency exchange[ |
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SECTION 3. Section 151.003, Finance Code, is amended to | ||
read as follows: | ||
Sec. 151.003. EXCLUSIONS. The [ |
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chapter: | ||
(1) the United States or an instrumentality of the | ||
United States, including the United States Post Office or a | ||
contractor acting on behalf of the United States Post Office; | ||
(2) a state or an agency, political subdivision, or | ||
other instrumentality of a state; | ||
(3) a federally insured financial institution, as that | ||
term is defined by Section 201.101, that is organized under the laws | ||
of this state, another state, or the United States; | ||
(4) a foreign bank branch or agency in the United | ||
States established under the federal International Banking Act of | ||
1978 (12 U.S.C. Section 3101 et seq.); | ||
(5) a person acting as an agent for an entity excluded | ||
under Subdivision (3) or (4), to the extent of the person's actions | ||
in that capacity, provided that: | ||
(A) the entity is liable for satisfying the money | ||
services obligation owed to the purchaser on the person's receipt | ||
of the purchaser's money; and | ||
(B) the entity and person enter into a written | ||
contract that appoints the person as the entity's agent and the | ||
person acts only within the scope of authority conferred by the | ||
contract; | ||
(6) a person that, on behalf of the United States or a | ||
department, agency, or instrumentality of the United States, or a | ||
state or county, city, or any other governmental agency or | ||
political subdivision of a state, provides electronic funds | ||
transfer services of governmental benefits for a federal, state, | ||
county, or local governmental agency; | ||
(7) a person that acts as an intermediary on behalf of | ||
and at the direction of a license holder in the process by which the | ||
license holder, after receiving money or monetary value from a | ||
purchaser, either directly or through an authorized delegate, | ||
transmits the money or monetary value to the purchaser's designated | ||
recipient, provided that the license holder is liable for | ||
satisfying the obligation owed to the purchaser; | ||
(8) an attorney or title company that in connection | ||
with a real property transaction receives and disburses domestic | ||
currency or issues an escrow or trust fund check only on behalf of a | ||
party to the transaction; | ||
(9) a person engaged in the business of currency | ||
transportation who is both a registered motor carrier under Chapter | ||
643, Transportation Code, and a licensed armored car company or | ||
courier company under Chapter 1702, Occupations Code, provided that | ||
the person: | ||
(A) only transports currency: | ||
(i) from a person to the same person at | ||
another location; | ||
(ii) from a person to a financial | ||
institution to be deposited in an account belonging to the same | ||
person; or | ||
(iii) to a person from a financial | ||
institution after being withdrawn from an account belonging to the | ||
same person; and | ||
(B) does not otherwise engage in the money | ||
transmission or currency exchange business [ |
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(9-a) a trust company, as defined by Section | ||
187.001(a), that is organized under the laws of this state; and | ||
(10) any other person, transaction, or class of | ||
persons or transactions exempted by commission rule or any other | ||
person or transaction exempted by the commissioner's order on a | ||
finding that the licensing of the person is not necessary to achieve | ||
the purposes of this chapter. | ||
SECTION 4. Section 151.201, Finance Code, is amended to | ||
read as follows: | ||
Sec. 151.201. SCOPE. This subchapter sets out the general | ||
qualifications and provisions that apply to a money services | ||
license, regardless of whether the license is a money transmission | ||
license or [ |
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qualifications and provisions that apply specifically to a money | ||
transmission license. Subchapter F sets forth the additional | ||
qualifications and provisions that apply specifically to a currency | ||
exchange license. [ |
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SECTION 5. Sections 151.207(a), (b), and (d), Finance Code, | ||
are amended to read as follows: | ||
(a) If a license holder does not continue to meet the | ||
qualifications or satisfy the requirements that apply to an | ||
applicant for a new money transmission license or [ |
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exchange license, [ |
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commissioner may suspend or revoke the license holder's license. | ||
(b) In addition to complying with Subsection (a), a license | ||
holder must annually: | ||
(1) pay a license fee in an amount established by | ||
commission rule; and | ||
(2) submit a report that is under oath, is in the form | ||
and medium required by the commissioner, and contains: | ||
(A) if the license is a money transmission | ||
license [ |
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financial statement dated as of the last day of the license holder's | ||
fiscal year that ended in the immediately preceding calendar year; | ||
(B) if the license is a currency exchange | ||
license, a financial statement, audited or unaudited, dated as of | ||
the last day of the license holder's fiscal year that ended in the | ||
immediately preceding calendar year; and | ||
(C) documentation and certification, or any | ||
other information the commissioner reasonably requires to | ||
determine the security, net worth, permissible investments, and | ||
other requirements the license holder must satisfy and whether the | ||
license holder continues to meet the qualifications and | ||
requirements for licensure. | ||
(d) If the license holder fails to submit the completed | ||
annual report and pay the annual license fee and any late fee due | ||
within the time prescribed by Subsection (c)(1), the license | ||
expires, and the license holder must cease and desist from engaging | ||
in the business of money transmission or [ |
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expiration of a license is not subject to appeal. | ||
SECTION 6. Section 151.302(a), Finance Code, as amended by | ||
Chapters 75 (S.B. 899) and 1000 (H.B. 483), Acts of the 84th | ||
Legislature, Regular Session, 2015, is reenacted to read as | ||
follows: | ||
(a) A person may not engage in the business of money | ||
transmission in this state or advertise, solicit, or represent that | ||
the person engages in the business of money transmission in this | ||
state unless the person: | ||
(1) is licensed under this subchapter; | ||
(2) is an authorized delegate of a person licensed | ||
under this subchapter, appointed by the license holder in | ||
accordance with Section 151.402; | ||
(3) is excluded from licensure under Section 151.003; | ||
or | ||
(4) has been granted an exemption under Subsection | ||
(c). | ||
SECTION 7. Section 151.502(a), Finance Code, is amended to | ||
read as follows: | ||
(a) A person may not engage in the business of currency | ||
exchange or advertise, solicit, or hold itself out as providing | ||
currency exchange unless the person: | ||
(1) is licensed under this subchapter; | ||
(2) is licensed for money transmission under | ||
Subchapter D; | ||
(3) is an authorized delegate of a person licensed for | ||
money transmission under Subchapter D; | ||
(4) is excluded under Section 151.003; or | ||
(5) [ |
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(d). | ||
SECTION 8. Section 151.602(a), Finance Code, is amended to | ||
read as follows: | ||
(a) A license holder must prepare, maintain, and preserve | ||
the following books, accounts, and other records for at least five | ||
years or another period as may be prescribed by rule of the | ||
commission: | ||
(1) a record of each money transmission transaction or | ||
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(2) a general ledger posted in accordance with | ||
generally accepted accounting principles containing all asset, | ||
liability, capital, income, and expense accounts, unless directed | ||
otherwise by the commissioner; | ||
(3) bank statements and bank reconciliation records; | ||
(4) all records and reports required by applicable | ||
state and federal law, including the reporting and recordkeeping | ||
requirements imposed by the Bank Secrecy Act, the USA PATRIOT ACT, | ||
and Chapter 271, and other federal and state laws pertaining to | ||
money laundering, drug trafficking, or terrorist funding; and | ||
(5) any other records required by commission rule or | ||
reasonably requested by the commissioner to determine compliance | ||
with this chapter. | ||
SECTION 9. Section 2116.001, Government Code, is amended by | ||
amending Subdivision (9) and adding Subdivision (9-a) to read as | ||
follows: | ||
(9) "Depository agent" means a financial institution | ||
that has entered into an agreement with the depository to provide a | ||
retail location for the provision of depository services to the | ||
general public on behalf of [ |
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(9-a) "Financial institution" has the meaning | ||
assigned by Section 201.101, Finance Code. | ||
SECTION 10. Section 2116.002, Government Code, is amended | ||
by adding Subsection (c) to read as follows: | ||
(c) The comptroller shall adopt rules necessary to carry out | ||
this chapter. | ||
SECTION 11. Section 2116.003, Government Code, is amended | ||
by amending Subsection (c) and adding Subsection (d) to read as | ||
follows: | ||
(c) The administrator may appoint or employ, subject to the | ||
approval of the comptroller, a deputy administrator or other | ||
subordinate officers or employees [ |
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appropriate to the efficient administration of the depository. | ||
(d) The comptroller may employ security officers to provide | ||
needed security services for the depository and may commission the | ||
officers as peace officers. | ||
SECTION 12. Sections 2116.005(c) and (d), Government Code, | ||
are amended to read as follows: | ||
(c) The comptroller [ |
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the quantities of precious metals deposited are credited to a | ||
depositor's depository account by reference to the particular form | ||
in which the metals were deposited, classified by mint, | ||
denomination, weight, assay mark, or other indicator, as | ||
applicable. The standards must conform to applicable national and | ||
international standards of weights and measures. | ||
(d) The comptroller [ |
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determines that to do so is in the public interest, restrict the | ||
forms in which deposits of precious metals may be made [ |
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SECTION 13. Sections 2116.006(b) and (c), Government Code, | ||
are amended to read as follows: | ||
(b) The depository shall make a delivery described by | ||
Subsection (a) on demand by the presentment of a written demand | ||
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depository or a depository agent. The comptroller may prescribe | ||
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which an order for delivery on demand may be made, presented, and | ||
honored. | ||
(c) The depository shall make a delivery at the depository's | ||
settlement facility designated by the comptroller, shipping to an | ||
address specified by the account holder or, at the depository's | ||
discretion, at a facility of a depository agent at which | ||
presentment is made, not later than 10 [ |
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the date of presentment. | ||
SECTION 14. Section 2116.007, Government Code, is amended | ||
to read as follows: | ||
Sec. 2116.007. TRANSFER OF DEPOSITORY ACCOUNT BALANCE. (a) | ||
In accordance with rules adopted under this chapter, a depository | ||
account holder may transfer any portion of the balance of the | ||
holder's depository account by written demand [ |
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digital electronic instruction to another person [ |
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(b) The depository shall adjust the depository account | ||
balances of the depository accounts to reflect a transfer | ||
transaction between depository account holders on presentment of | ||
the written demand [ |
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the payor's depository account balance and increasing the | ||
depository account balance of the payee accordingly. | ||
(c) If a depository account holder transfers to a payee who | ||
is not a depository account holder any portion of the balance of the | ||
depository account holder's depository account, the depository | ||
shall, if the payee is otherwise eligible to open a depository | ||
account under applicable laws and depository policy, allow the | ||
payee to establish a depository account [ |
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established account on behalf of the payee and shall debit the | ||
payor's account accordingly. | ||
SECTION 15. Sections 2116.008(c) and (e), Government Code, | ||
are amended to read as follows: | ||
(c) The depository [ |
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contract for a depository account in the records pertaining to the | ||
account. | ||
(e) The depository and the depository account holder may | ||
amend a contract for a depository account by agreement, or the | ||
depository may amend the deposit contract by providing [ |
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written notice of the amendment to the account holder, separately | ||
or as an enclosure with or part of the account holder's statement of | ||
account or passbook. In the case of amendment by notice from the | ||
depository, the notice must include the text and effective date of | ||
the amendment. The notice may be provided electronically. The | ||
effective date may not be earlier than the 30th day after the date | ||
the notice is mailed, unless otherwise provided by rules adopted | ||
under this chapter. | ||
SECTION 16. Section 2116.010, Government Code, is amended | ||
to read as follows: | ||
Sec. 2116.010. FEES; SERVICE CHARGES; PENALTIES. The | ||
comptroller [ |
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penalties to be charged a depository account holder for a service or | ||
activity regarding a depository account, including a fee for an | ||
overdraft, an insufficient fund check or draft, or a stop payment | ||
order. The comptroller may waive any fees, service charges, or | ||
penalties established under this section. | ||
SECTION 17. Section 2116.021, Government Code, is amended | ||
to read as follows: | ||
Sec. 2116.021. TRANSACTIONS AND RELATIONSHIPS; MARKETING | ||
AND PUBLICITY. (a) The depository may [ |
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transactions and relationships with bullion banks, depositories, | ||
dealers, central banks, sovereign wealth funds, financial | ||
institutions, international nongovernmental organizations, and | ||
other persons, located inside or outside of this state or inside or | ||
outside of the United States, as the comptroller determines to be | ||
prudent and suitable to facilitate the operations of the depository | ||
and to further the purposes of this chapter. | ||
(b) The depository may advertise and promote the depository | ||
in any available media. | ||
(c) The depository may issue, sell, license for sale, or | ||
obtain a license to sell promotional items approved by the | ||
administrator to further the purposes of this chapter and to | ||
promote the depository. The depository may set commercially | ||
reasonable prices for items licensed or sold under this section. | ||
SECTION 18. Section 2116.023, Government Code, is amended | ||
by adding Subsection (d) to read as follows: | ||
(d) The depository shall refer any matter relating to an | ||
action described by Subsection (a) to the attorney general for | ||
resolution. | ||
SECTION 19. Section 2116.024, Government Code, is amended | ||
to read as follows: | ||
Sec. 2116.024. OFFICIAL EXCHANGE RATES. The comptroller | ||
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exchange rate for pricing precious metals transactions in terms of | ||
United States dollars or other currency must be established at the | ||
time of a depository transaction. The comptroller shall establish | ||
procedures and facilities through which the rates are made | ||
discoverable at all reasonable times by system participants, both | ||
on a real-time basis and retrospectively. | ||
SECTION 20. Section 2116.025, Government Code, is amended | ||
to read as follows: | ||
Sec. 2116.025. FACILITATION OF ACCOUNTING AND REPORTING OF | ||
TAXABLE GAINS. The comptroller [ |
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procedures and requirements for the depository and depository | ||
agents designed to minimize the burden to system participants of | ||
accounting for and reporting taxable gains and losses arising out | ||
of depository transactions as denominated in United States dollars | ||
or another currency. | ||
SECTION 21. Subchapter A, Chapter 2116, Government Code, is | ||
amended by adding Section 2116.027 to read as follows: | ||
Sec. 2116.027. CONFIDENTIALITY OF RECORDS; OTHER RECORDS | ||
EXEMPT FROM DISCLOSURE. (a) Records relating to individual | ||
depository accounts or depository account holders, including | ||
current, former, or prospective depository account holders, that | ||
are in the custody of the depository or a vendor performing services | ||
related to the depository are confidential and exempt from | ||
disclosure under Chapter 552. | ||
(b) The following information of the depository is excepted | ||
from the requirements of Section 552.021: | ||
(1) records and other information related to the | ||
security of the depository; | ||
(2) records related to the method of setting the | ||
depository's fees, service charges, penalties, and other charges or | ||
payments; and | ||
(3) commercial or financial information that would | ||
cause substantial competitive harm to the depository, including | ||
operational or other information that would give advantage to | ||
competitors or bidders. | ||
(c) Notwithstanding Subsection (a), depository account | ||
information may be disclosed: | ||
(1) to a depository account holder regarding the | ||
depository account holder's account; | ||
(2) to a state or federal agency as required by | ||
applicable law; | ||
(3) to a vendor providing services to the depository; | ||
(4) in response to a subpoena issued under applicable | ||
law; | ||
(5) if compiled as collective information that does | ||
not include any identifying information about a person; or | ||
(6) as otherwise permitted by the depository account | ||
agreement applicable to a depository account holder's account. | ||
SECTION 22. Section 2116.051, Government Code, is amended | ||
to read as follows: | ||
Sec. 2116.051. USE OF DEPOSITORY AGENTS. The depository | ||
may [ |
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depository services to the public [ |
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SECTION 23. The following laws are repealed: | ||
(1) Sections 151.002(b)(9-a), (9-b), and (9-c), | ||
Finance Code; | ||
(2) Section 151.603(c-1), Finance Code; and | ||
(3) Subchapter J, Chapter 151, Finance Code. | ||
SECTION 24. This Act takes effect immediately if it | ||
receives a vote of two-thirds of all the members elected to each | ||
house, as provided by Section 39, Article III, Texas Constitution. | ||
If this Act does not receive the vote necessary for immediate | ||
effect, this Act takes effect September 1, 2019. | ||
______________________________ | ______________________________ | |
President of the Senate | Speaker of the House | |
I certify that H.B. No. 2458 was passed by the House on April | ||
25, 2019, by the following vote: Yeas 133, Nays 2, 1 present, not | ||
voting. | ||
______________________________ | ||
Chief Clerk of the House | ||
I certify that H.B. No. 2458 was passed by the Senate on May | ||
10, 2019, by the following vote: Yeas 31, Nays 0. | ||
______________________________ | ||
Secretary of the Senate | ||
APPROVED: _____________________ | ||
Date | ||
_____________________ | ||
Governor |